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WAEC Commerce 1995 Question 15

Question 15

Wholesale Trade

Del-credere commission is an

  1. A.allowance paid to a supplier
  2. B.extra allowance paid for guaranteeing recovery of debts
  3. C.allowance paid to all commission agents
  4. D.allowance paid by the agent
  5. E.allowances to ensure delivery of goods by commission agent
Show the answer and explanation

Answer: B (extra allowance paid for guaranteeing recovery of debts)

Explanation

A del credere agent receives extra commission for guaranteeing that the buyers he finds will pay.